FACTORS AFFECTING THE QUALITY OF AUDIT PROCESS “THE EXTERNAL AUDITORS’ PERCEPTIONS”

Authors

  • Nashat Ali Almasria Philadelphia University

Abstract

Purpose — This research aims to investigate the factors that affect audit quality including the board of directors’ characteristics and performance, the audit committee responsibilities, internal audit factors and performance, and the quality of the external audit.Design/methodology/approach — This study expanded the previous research that has used different proxies to measure audit quality, this study employed a questionnaire to measure audit quality and internal governance mechanisms by adopting some practical indicators from previous literature which could reflect and affect audit quality. Findings — According to the regression results, it has been found that there is a strong positive relationship which is statistically significant between the work performance of internal auditors and the audit quality (β =0.280, p=.000), the strongest relationship was between audit quality and work performance and it contributes to the model and this is consistent with prior studies.  Further, the board of directors’ responsibilities has been determined to have a significant impact on audit quality where the coefficient of determination is .085 at a significant level. Practical implications — Due to prevalent corporate scandals and audit failures around the world in recent years, there has been a renewed interest in the relationship between Internal Corporate Governance Mechanisms (ICGM) and External Audit Quality (EAQ). Audit quality and corporate governance mechanisms are significant aspects of today’s business practices. Hence, these issues have evoked interest and received the attention of regulators, researchers, and practitioners and have become the center of the argument, due to their role in boosting investors’ confidence and improving the reliability of financial reports.Originality/value — The current study contributed to auditing and corporate governance literature, this study expanded the previous research that has used different proxies to measure audit quality and factors influencing audit quality.  Keywords — Pancasila, accounting education, accountant, financial fraud Paper type — Research Paper

Author Biography

Nashat Ali Almasria, Philadelphia University

Nashat Ali ALMASRIA, Accounting Department, College of Business, Philadelphia University, Jordan. Email: nalmasria@philadelphia.edu.jo

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Published

2022-04-30

How to Cite

Almasria, N. A. (2022). FACTORS AFFECTING THE QUALITY OF AUDIT PROCESS “THE EXTERNAL AUDITORS’ PERCEPTIONS” . The International Journal of Accounting and Business Society, 30(1). Retrieved from https://ijabs.ub.ac.id/index.php/ijabs/article/view/539